What is bankruptcy?
Bankruptcy procedure is a special kind of a non-contentious proceeding conducted to collectively settle the liabilities towards all creditors of the bankrupted debtor by realizing his/her assets and dividing the obtained money to the creditors.
Reasons to introduce a bankruptcy procedure
- payment inability (inability to settle their own liabilities or to pay three salaries)
- over-indebtedness (the value of debtor's assets is less than the value of his/her liabilities)
- account blockage longer than 120 days.
According to the new Bankruptcy Act in force as of September 1, 2015, bankruptcy costs are to be borne by company owner, director, founders, managerial board etc., while the company liabilities are to be settled from the company assets. Bankruptcy costs (deposit for the bankruptcy procedure, liabilities towards bankruptcy manager, bankruptcy commissioner, temporary bankruptcy manager, additional and special award for bankruptcy manager, liabilities towards expert who determines debtor’s financial capability etc.) amount to a minimum of HRK 50,000.00, depending on the height of the sold bankruptcy estate.
Who initiates bankruptcy?
Bankruptcy can be initiated by debtors, if commissioner agrees, and in case of a blockage longer than 120 days, FINA automatically initiates bankruptcy.
How can we help you?
Our company Maneo offers legal and economic consulting for entrepreneurs in difficulty. We offer consulting services and creation of documentation during the bankruptcy procedure, but also before. In case of your company’s blockage and if threatened by bankruptcy, which is not your acceptable option, feel free to contact us with confidence. Our experts will advise you what measures to undertake so that your company does not go bankrupt but returns to normal business operations, all in accordance with valid regulations.
On the other hand, in case you opt for the bankruptcy, we will advise you on appropriate models and create a bankruptcy plan and other necessary documentation for you.